A System of Demand Equations Based on Price Independent Generalized Linearity.

This paper proposes a static demand system of the Price Independent Generalized Linearity (PIGL) class of J. Muellbauer. The primary motivation for this is to use the plausible nonlinear income responses displayed by the PIGL in empirical analysis. The performance of the proposed system is compared empirically with those of the Almost Ideal Demand Sy stem and a modification of the simple Nonadditive model of A. S. Deaton. The results bring out the in-adequacies of the PIGL specifications in capturing fully the nonlinearity of income responses implicit in the repeated cross-sectional Ind ian consumption data used in the empirical work. Copyright 1987 by Economics Department of the University of Pennsylvania and the Osaka University Institute of Social and Economic Research Association.